Hi there fellow forumites,
I am writing this on behalf of my sister who has wonderful tenants in her property, they have been in this house for over four years, nearly five, and have been great the whole time. However my sister, (the big softie), has not raised the rent once during the whole time. The rent at the moment is $180 pw, but comparable rents have risen to around the $280 mark. She in not intending to raise it this much, but is having trouble finding the words to put in the letter that she is going to put it up at all. She has been meaning to raise it for a while now, but each time she sits down to write the letter, she has a mind blank! Any suggestions on how to word this? (keeping in mind that they (tenants) are lovely. I have been no help to her whatsoever, I have the same problem myself (we are both softies, may be genetic!) Any help would be very appreciated. Ps, we have both decided that the next time these properties are let out, they will be managed by professionals!
Thanks in advance, Painterpainter,
In a book called “The Australian Landlord’s Handbook” by Suzi Bilosh, it goes something like this…
Dear (Mr/Mrs/Ms) Tenant
Re: Rent increase at: (….address….)
I am giving you ….. days notice to inform you of a rent increase of $……. that will come into effect on …/…/2004. Therefore the rent due it $……, due on the …….. of every ………. If you anticipate that you will not be renewing the tenancy you are required to give me …… days notice.
I appreciate the good care you take of the home and hope you will continue your stay.Thank you.
Yours Sincerely
Landlord’s name:
Considering how fantastic your tenants are, this might sound a little tough. If nothing else though, it gives you one example of how to set out the notice.
Hope this helps,
Steve.“Knowledge is Power”
I am a softy so I know where she is coming from.
If she cannot raise the rent to market value herself then I suggest that using a PM will be money well spent. At $100pw difference she is $5000 out of pocket. Would your sister give them this much cash each year to avoid embarrasment?
She needs to remember this is a business not a charity.
All the best to her,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by MortgageHunter:I am a softy so I know where she is coming from.
If she cannot raise the rent to market value herself then I suggest that using a PM will be money well spent. At $100pw difference she is $5000 out of pocket. Would your sister give them this much cash each year to avoid embarrasment?
She needs to remember this is a business not a charity.
All the best to her,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I totally agreed. But instead of just raising the rent, you can say like I am going install a/c, wardrobe, fans, new paint but I am going to raise the rent to $xxx.
Warm Regards
ChanDollars
[The bridge between where you are right now & where you want to be tomorrow is knowledge]If you point out what the current market rate is and don’t even raise it to that level, even though they might be disappointed at a rise of $50 or whatever, if they look around they’ll see they’re still getting a fabulous deal and they’d be crazy to leave, even with the rent rise.
I just wish your sister was MY landlord
Hi again folks,
Thanks very much for the feedback, it is all very helpful.
Re. Younginvestor reply: Yes, it is a good start, she will be able to play around with this to make it a bit more friendly.
Re. Mortgage Hunter’s reply: Is good to know there are other ‘softies’ out there. I felt a bit silly posting this question, and I like the context that you have put this in, ie “At $100pw difference she is $5000 out of pocket. Would your sister give them this much cash each year to avoid embarrasment?”, makes it a bit easier to get tough, so to speak.
Re. Chan$ reply: Good tip, she is thinking about new curtains for this house, now sounds like the time to do it!
Re. Landlordtobe’s reply: Yes, this does put it in a very sensible way, hopefully she will see it like this too!
Thanks again everyone for the replies, I will keep you posted with the end result. Cheers, Painter
Another idea, similar the Landlordtobe above.
Why don’t you state that the market rent for the unit is around $280 per week rent, hence we are putting the rent up to this level. Then say however, if you think this is too much, please contact me on xxx and we can arrange a slight reduction.
That way if they don’t contact you, you get the full amount. If they do contact, you can reduce the rent down to the original amount you were going to charge, and they will think your sister is a nice person.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
haha – new curtains meaning a rent rise of $100 p/w
Hi guys
Isn’t there something in the various tenancy acts that says you can’t raise the rent by so much at once? I mean, we’re looking at nearly a 50% increase here!!
I’ve got a friend who’s been in my place for 2 or 3 years. She’s paying $180, and I’ve just seen one in the complex advertised (once, it’s gone now, so assume they got the price) for $250. I really want to raise it, but just when I thought of bringing it up, she was telling me how the money she was supposed to get from her ex for the kids hadn’t come, and she only had $20 for the next week!! [ohno]
So there went my rent increase[ohno2]
Maybe let them know the market value, and suggest you will increase it at $10-30pw every 6 months starting now? As has been said, point out how good they are, and ask is there anything they would like done to the place. Perhaps give them a choice in the curtains. Not free range, just this OR this, or maybe this.
Good luck.
Cheers
MelMy advice for what its worth.
1. Use a property manager. You dont need to hear the hard luck stories.
2. Charge $10-15 per week below market rent. Make the property manager, let the tenant know they are getting a price lower than market rent.
3. If they leave you find a tenant close to market rent.
4. I would not go to the hassle of buying new curtains or air con etc.I think that I would wait until the lease expires. Give them plenty of warning that the property will be raised to market rent and they can then choose whether to stay or move.
Use a PM as they have no problems managing rent increases. The extra rent will more than pay their comission.
Bottom line is she is running a business not a charity!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Terryw:Another idea, similar the Landlordtobe above.
Why don’t you state that the market rent for the unit is around $280 per week rent, hence we are putting the rent up to this level. Then say however, if you think this is too much, please contact me on xxx and we can arrange a slight reduction.
That way if they don’t contact you, you get the full amount. If they do contact, you can reduce the rent down to the original amount you were going to charge, and they will think your sister is a nice person.
Terryw
Discover Home Loans
North Sydney
[email protected]Good one Terry
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]
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